Input tax credit: integrated credit must be exhausted first; thereafter central or state credits may be used in any order. The circular clarifies that integrated tax credit must be completely exhausted before central or state/union territory tax credits can be utilised; a new rule permits integrated tax credit to be applied towards central and state liabilities in any order or proportion so long as the entire integrated credit is first exhausted. Illustrations demonstrate permissible allocations. Taxpayers should continue to follow current common portal functionality until the portal is updated, and implementation difficulties may be reported to the Commissioner.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit: integrated credit must be exhausted first; thereafter central or state credits may be used in any order.
The circular clarifies that integrated tax credit must be completely exhausted before central or state/union territory tax credits can be utilised; a new rule permits integrated tax credit to be applied towards central and state liabilities in any order or proportion so long as the entire integrated credit is first exhausted. Illustrations demonstrate permissible allocations. Taxpayers should continue to follow current common portal functionality until the portal is updated, and implementation difficulties may be reported to the Commissioner.
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